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Subsidy
The subsidy model is a financial benefit provided by the state to organizations or private individuals that (unlike a performance mandate) is not tied to a direct service. The state financially supports a certain behavior, which can also take the form of an omission.
Nationwide internet connection
Ireland
In 2012, the Irish government pushed expansion of the Internet throughout the country. All households were to have access to an Internet connection with a download speed of at least 20 Mbps by 2026. To this end, subsidies of over €2 billion were granted under a contract signed in 2019.
20.02.2025
Development loan
The development loan is a model in which the state provides money for the development of a project or organization; funds are repaid after a successful launch phase. The granting of credit may be subject to certain conditions, such as the pursuit of a public purpose. However, it can also simply be a funding instrument for start-ups that are ultimately intended to benefit the economic development of a region. The model is similar to that of start-up financing. However, the payment is not à fonds perdu, but rather based on a loan that must be repaid. This repayment may be linked to successful task fulfillment.
Innovasjon Norge
Norway
The Norwegian government has an official organization, Innovasjon Norge, which provides companies in Norway with capital and know-how. Thus, startups have a variety of different financing options that are more or less relevant depending on the current situation. Among others, there is the “Innovation Loan,” “Start-up Loan,” and “Growth Guarantee.”
20.02.2025
Development loan
The development loan is a model in which the state provides money for the development of a project or organization; funds are repaid after a successful launch phase. The granting of credit may be subject to certain conditions, such as the pursuit of a public purpose. However, it can also simply be a funding instrument for start-ups that are ultimately intended to benefit the economic development of a region. The model is similar to that of start-up financing. However, the payment is not à fonds perdu, but rather based on a loan that must be repaid. This repayment may be linked to successful task fulfillment.
Empowerment loans
Tanzania
Women and people with disabilities rarely receive bank loans in Tanzania. If they do, the high interest rates often prove to be a poverty trap. For this reason, the Ilal Municipality provides these population groups with 10% of their annual income in the form of interest-free loans. The loans are given to groups of at least five people who start a business together. Additionally, they are accompanied by training on how best to use the funds.
20.02.2025
Seed money
In the seed money model, the state generally assumes the initial investment required to establish a new service. This is based on the assumption that further financing of the operation of the service is secured. Start-up financing is provided à fonds perdu (i.e., no repayment is expected). For the state, it is a one-time expense.
Care support points in Bavaria
Germany
In Bavaria, about 70% of those in need of care live at home, which leads to a high demand for support services. The Bavarian State Office for Care supports the sponsors of care support centers. New support centers receive up to €20,000 for the purchase of equipment, training, and a vehicle for outreach counsel-ing. Support centers can also receive funding of up to €15,000 to expand their operations, provided they invest in enhancing networking efforts and facilitating knowledge transfer.
20.02.2025
Seed money
In the seed money model, the state generally assumes the initial investment required to establish a new service. This is based on the assumption that further financing of the operation of the service is secured. Start-up financing is provided à fonds perdu (i.e., no repayment is expected). For the state, it is a one-time expense.
Revolving Water Fund in Madhya Pradesh
India
In the state of Madhya Pradesh, a Revolving Water Fund has been established to finance the water sup-ply for poor neighborhoods in larger cities. NGOs and CBOs (community-based organizations) are in-volved in filling the funding gap. These provide financial resources to improve infrastructure. The model relies on the sustainable self-sufficiency of the communities, which is made possible by the fund.
20.02.2025
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